USDA Funds Growth for Wisconsin Dairy Plant

By Blake Jackson

USDA Rural Development announces a major investment to support the growth of Westby Cooperative Creamery, a farmer-owned dairy cooperative in Wisconsin. The cooperative, known as the state’s only producer of cottage cheese, receives nearly $15.5 million through the Rural Development Business and Industry Guaranteed Loan program.

The loan is offered in partnership with Security Financial Bank. This investment helps the cooperative expand and update its manufacturing facility to meet rising customer demand.

The main goal of the project is to modernize older equipment and increase production capacity. The expansion strengthens food safety, worker safety, and long-term economic stability for the cooperative’s members. The project also supports 150 jobs in the rural community, showing the importance of dairy production in Wisconsin.

According to USDA Rural Development leaders, this investment helps build rural prosperity. Programs like the Business and Industry Guaranteed Loan support cooperatives, farmers, and rural economies by helping businesses improve their operations. The expansion at Westby Cooperative Creamery helps keep dairy production strong while giving farmers a stable market.

The upgraded facility includes several improvements. New enclosed systems help automate ingredients, testing, and sanitation. HEPA-filtered air environments improve product safety. Production time is reduced from 16 hours to eight, and yield increases by 10% to 15% from the same amount of milk.

The project includes a new food-grade room, four enclosed cottage cheese vats that each produce up to 5,700 pounds per run, two 10,000-gallon cream tanks, a new 30,000-gallon Wisconsin-made milk silo, and improved refrigeration and sanitation systems. These upgrades help the cooperative create more cottage cheese faster and more safely.

This investment also comes during the United Nations’ 2025 International Year of Cooperatives, which celebrates how cooperatives support sustainable development and community growth. The expansion of Westby Cooperative Creamery shows how cooperatives continue to strengthen rural areas through shared ownership and long-term planning.

Photo Credit: usda